Manchester Disunited

Manchester United shareholders have been biting their nails at least as much as the English Premier League club’s supporters. That’s because one of the most successful soccer clubs in the modern history of the sport is suffering the doldrums.

For supporters it means a loss of bragging rights and of seeing their club languishing in the mid-table, well off the pace of clubs competing for the English Premier League title.

For investors this sluggish performance means a substantial hit to next year’s revenues.

Top placed clubs across Europe are invited to compete in the UEFA Champions League, a separate and extremely wealthy competition. Broadcast revenue typically makes up from a quarter to more than half of all top clubs’ total turnover.

And Champions League distributions to participants from UEFA alone–so not including additional match-day or commercial income associated with being in the competition–makes up a quarter to more than half of these clubs’ broadcast revenue.

By coming in below where it needs to to enjoy Champions League soccer next year, Manchester United stands to lose some €36 million of revenue it made in the 2012/13 season or some 9% of that year’s total revenue.

It was easier for Sir Alex Ferguson, Mr. Moyes’ illustrious predecessor. He too had an inasupicious start in 1986, leading the club through several indifferent years before developing the magic touch. But back then, a bigger proportion of revenue came from supporters going to games. And in those days, supporters were much more patient than investors are today.